Every year, the IRS levies hefty fines on about 40% of business owners for payroll errors. No business is safe from the consequences of payroll errors. Fortunately, most of the payroll errors are easily avoidable by staying informed about the latest payroll technology and trends.
Cloud-based payroll software
As more and more organizations transition to working from home post-Covid-19, cloud-based payroll software is expected to gain even more importance. HR departments who manage payroll remotely don’t have to go to their office to access payroll information. They can access the payroll information in real-time, including their pending leaves and PTO requests. On-premise payroll software is prone to cybercrime, but cloud-based payroll software includes various protective services like cybersecurity and software updates to keep your sensitive information safe.
The AI-advantage
Earlier, payroll service was limited to calculating employees’ wages, processing their payments, and generating simple reports, but today’s AI-powered payroll systems are so smart that they can even help classify employees and place them in the correct tax brackets. They are even capable of analyzing the vast amount of payroll data collected.
[Also Read: AI Trends 2021: What positive changes to expect?]
Automated Payroll system
Several companies today are adopting automated payroll systems in their organizations due to the several benefits they offer. One major benefit is that they are less prone to errors and save time by accelerating the payroll process as there are fewer employees involved with payroll management. Since they also come with performance management tools, they are able to evaluate employees’ job performance and gauge their progress to make performance-based compensation.
Easy management of diverse workforce with payroll software
Traditional payroll systems aren’t well-equipped to handle a diverse and dynamic workforce, such as gig workers and freelancers. With the help of payroll software, both full-time employees and gig workers can be efficiently managed. It also enables organizations to keep tabs on temporary workers’ work progress and issue the payment when the project is delivered.
Mobile-based payroll applications
Mobile-based payroll applications enable HR managers to process payroll from any part of the world. They also facilitate transparent payroll computations for all employees across departments and minimize human errors by automating the calculation of taxes.
Digital wallets and email-friendly checks
Digital wallets and email-friendly checks enable instant payments at the click of a button. This means, instead of waiting for direct deposits or typical bi-weekly payments, employees can get their payments through round-the-clock instant interbank electronic fund transfer services made possible by payroll software.
Multiple-service integration
Advanced payroll applications can be easily integrated with HRM (Human Resource Management) and finance/accounting applications. This enables Human Resource staff to easily manage all employee and finance-related information from a single point of access. Payroll services can also be integrated with project management software to keep track of employees’ work progress and pay them on completion of the project.
When running a business, you have to take care of many things, especially the money required to sustain the business. You don’t want to add payroll penalties to your expense list. Modern payroll technology helps you optimize and smoothly carry out your payroll process so that you can enjoy complete peace of mind.
